Andhra Pradesh chief minister N Kiran Kumar Reddy on Thursday unveiled the state electronic hardware policy offering a slew of incentives, including 100 per cent reimbursement of value-added tax (VAT) and goods and services tax (GST), for a period of five years to those who set up units in Hyderabad and other parts of the state.
Under the policy, the government has also exempted the electronic hardware industry from any power cuts and statutory inspections, except in the case of a specific complaint, besides facilitating three-shift operations with women working in the night shifts as well.
Releasing the electronic hardware policy at the two-day IT summit, the chief minister urged the companies to make use of the government policy and the conducive environment available here to start their operations.
Among the key initiatives to back up the policy incentives, the government has proposed to create four hubs (or clusters) in and around the newly-built outer ring road around the state capital, common testing and incubation facilities, a common fund under public-private participation to promote design, manufacturing, assembling and innovation, a single-window system for necessary clearances, among others.
The government has brought under the policy close to 170 non-semiconductor items besides a whole range of semiconductor manufacturing and testing equipment and parts used in making semiconductor equipment. And, there are items like televisions and high-definition televisions that do not come under the policy.
Incentives such as 100 per cent reimbursement of stamp duty, transfer duty and registration fee paid on sale/lease deeds etc, 50 per cent reimbursement on second transaction, power subsidy ranging from 10 per cent to 50 per cent limiting to Rs 30 lakh for a period of five years, among other discounts, are also offered to companies.
According to the government figures, Andhra Pradesh, which houses 300 electronic manufacturing units, ranks fifth in electronics hardware production in the country.
